Finland-based stainless steel producer Outokumpu has announced its financial results for the first quarter of the current year, registering a net profit of €22 million compared to a net loss of €39 million in the same quarter of the previous year, while the company's sales in the first quarter this year fell by 5.8 percent year on year to €1.61 billion.
In the given quarter, Outokumpu’s adjusted EBITDA was €106 million, compared to €54 million in the first quarter of 2019. The company stated that the first quarter results were in line with its adjusted EBITDA guidance. According to the statement by the company, significantly improved raw material efficiency and lower costs positively affected the company’s profitability, while ferrochrome profitability was negatively impacted by the lower ferrochrome benchmark price.
Outokumpu's stainless steel deliveries in the first quarter this year declined by five percent year on year to 588,000 mt.
The company stated that they will not announce adjusted EBITDA guidance for the second quarter of this year due to the global economic uncertainty caused by the coronavirus pandemic. However, Outokumpu expects the stainless steel industry to be significantly affected by the preventative measures and lockdowns related to the coronavirus pandemic during this year. On the other hand, the company foresees stainless steel demand will decrease compared to the first quarter of this year as a result of lower industrial production and decreasing consumer spending. Besides, the company’s stainless steel deliveries are expected to show a decrease in all business areas by 10–20 percent in the second quarter compared to the first quarter of the year.